Technology Funding Trends in India 2Q13-1Q14: CB Insights

Last one year has been great in terms of ‘Tech Funding’ for the country. With lots of dollars floating in, Ecommerce has emerged as a leading segment, with players like Flipkart garnering investments in billions.

According to a CB Insights study, over the past four quarters Indian tech companies have raised a total of USD 1.3 billion across 266 deals, up by 69% on a Y-o-Y funding basis.

For the period between 2Q13-1Q14, eCommerce Industry accounted for 72% of all funding to tech companies. As per the data collected by CB Insights, here is a list of top 25 VC backed financings to date since the start of year 2014:

Based on number of deals, 8 of the top 20 sub-industries are related to eCommerce including multi-product commerce, apparel and accessories, food & grocery, marketplaces, internet travel, comparison shopping, and eCommerce enablement companies.

In all these deals, Indian investors, Blume Ventures and Kalari Capital took place among the top 10 institutional investors. However most investment came from foreign investors (500 Capital, Accel partners, Tiger Global Management, etc.).

The Indian eCommerce and tech ecosystem is currently a hot spot for foreign investors to place their bets, opening chances for more funding explosions like those of Flipkart and Snapdeal. Also, we expect more Indian investors to encourage early stage financing, thereby opening up gates for budding entrepreneurs to this segment in large numbers.